Davis + Henderson Corp. is buying lending and compliance technology firm Harland Financial Solutions after entering into an agreement with Harland's parent company, Harland Clarke Holdings Corp.
The Lake Mary, Fla.-based HFS will be acquired for approximately $1.2 billion, allowing D+H to better establish itself as a top financial technology firm. The company provides services to clients in community banking as well as to large financial firms and credit unions.
The acquisition gives D+H more compliance solutions, banking technology, and 5,400 U.S. bank and credit union clients, bringing its total client base to more than 6,200 financial firms.
The pro form 2012 combined annual revenue of both firms reached $1.1 billion, with 90% of that recurring in nature.
"Acquiring HFS fully aligns with D+H's FinTech vision and our objective of growing our technology capabilities and value proposition in the service of banks and credit unions," said Gerrard Schmid, CEO of D+H.
"With proven technology solutions that are mission critical for clients and complementary to our D+H offerings, solid financial performance, including strong cash flows provided under long-term contracts, and an experienced team of approximately 1,350 employees across some 17 locations, HFS adds the scope and scale necessary for D+H to be a trusted market leader in the U.S. We also believe that this union will allow us to create even more differentiated product offerings by combining our market-leading lending solutions with HFS' strong suite of lending products."
